Avantor, Hilton, Boyd, Caraustar, SRAM break; Aramark, HCA, Allnex, Valeant update deals

By Sara Rosenberg

New York, March 9 – Deals from Avantor Performance Materials Holdings Inc., Hilton Worldwide Finance LLC, Boyd Gaming Corp., Caraustar Industries Inc. and SRAM LLC all made their into the secondary market on Thursday.

Meanwhile, in the primary market, Aramark Corp. firmed the spread on its term loan B at the low end of talk, added a step-down and revised the issue price, and HCA Inc. finalized pricing on its term loan B-9 at the tight side of talk.

Also, Allnex set pricing on its term loans at the low end of the most recent guidance, and Valeant Pharmaceuticals International Inc. sweetened the call protection on its incremental series F-3 term loan B.

In addition, GTA TeleGuam and Advanced Integration Technology LP came out with price talk on their loans with launch, and Lightstone Holdco LLC emerged with new deal plans.

Avantor starts trading

Avantor Performance Materials’ credit facility emerged in the secondary on Thursday, with the $1,485,000,000 seven-year covenant-light first-lien term loan seen at par ½ bid, 101 offered and the $475 million eight-year covenant-light second-lien term loan seen at par bid, 101 offered, a market source remarked.

Pricing on the first-lien term loan, which includes a $60 million delayed-draw tranche, is Libor plus 400 basis points with a 25 bps step-down added at 5.25 times total net leverage and a 1% Libor floor. The debt was sold at an original issue discount of 99.75 for new money and at par for rollover money and has 101 soft call protection for six months.

The second-lien term loan, of which $20 million is a delayed-draw piece, is priced at Libor plus 825 bps with a 1% Libor floor and was issued at a discount of 99. This tranche has hard call protection of 102 in year one and 101 in year two.

The delayed-draw term loans have a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Avantor getting revolver

In addition to the first- and second-lien term loans, Avantor’s $2,035,000,000 credit facility includes a $75 million five-year revolver.

On Tuesday, the first-lien term loan was upsized from $1,425,000,000 with the addition of the delayed-draw piece, pricing was reduced from Libor plus 425 bps and the step-down was added. Also, the second-lien term loan was upsized from $380 million, the delayed-draw tranche was added and the discount was tightened from 98.5.

Jefferies Finance LLC, KeyBanc Capital Markets and Guggenheim are leading the deal that will be used to refinance existing debt and fund a dividend, and the delayed-draw debt will be used to fund an acquisition. The size of the dividend was increased with the upsizing to the funded amount of second-lien term loan borrowings.

As part of this transaction, existing first-lien term loan lenders are being paid out at a premium of 101.

Avantor is a Center Valley, Pa.-based provider of performance materials and solutions for the life sciences and advanced technology markets.

Hilton bid above par

Hilton Worldwide’s $3,959,000,000 covenant-light term loan B-2 due October 2023 broke for trading as well, with levels quoted at par ¾ bid, according to a market source.

Pricing on the loan is Libor 200 basis points, after firming at the low end of the Libor plus 200 bps to 225 bps talk, and the debt has a 0% Libor floor. The loan was issued at par and includes 101 soft call protection for six months.

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing $3,209,000,000 term loan B-2 from Libor plus 250 bps with a 0% Libor floor and to extend/refinance a $750 million term loan B-1.

Originally existing term loan B-1 lenders were offered a 12.5 bps extension fee, but that fee was eliminated from the proposal during syndication.

Closing is expected on March 16.

Hilton is a McLean, Va.-based hospitality company.

Boyd frees up

Boyd Gaming’s $1,265,000,000 term loan due September 2023 also began trading, with levels seen at par 3/8 bid, par ¾ offered on the break and then it moved to par ½ bid, par ¾ offered, a trader said.

Pricing on the term loan is Libor plus 250 bps with a step-down to Libor plus 225 bps when net secured leverage is less than 2.5 times and a 0% Libor floor. The debt was issued at par and includes 101 soft call protection for six months.

During syndication, pricing on the loan firmed at the tight end of the Libor plus 250 bps to 275 bps talk and the step-down was added.

Bank of America Merrill Lynch is the left lead on the deal that will be used to reprice an existing term loan B-2 due September 2023 from Libor plus 300 bps with a 0% Libor floor and refinance an existing term loan B-1 due Aug. 14, 2020 that is priced at Libor plus 300 bps with a 1% Libor floor.

Boyd is a Las Vegas-based operator of gaming entertainment properties.

Caraustar hits secondary

Caraustar Industries’ $860 million five-year covenant-light first-lien term loan (B2/B+) freed up too, with levels seen at par 3/8 bid, par 7/8 offered, according to a market source.

Pricing on the loan is Libor plus 550 bps with a 1% Libor floor, and it was sold at an original issue discount of 99.75. The debt has 101 soft call protection for six months.

On Tuesday, pricing on the loan was reduced from Libor plus 600 bps, the discount was modified from 99 and a $30 million dividend basket was added, available for one year post closing subject to 4.1 times total net leverage.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to refinance existing debt.

Caraustar is an Austell, Ga.-based manufacturer of recycled paperboard and converted paperboard products.

SRAM tops OID

SRAM’s $570 million term loan B (B2/B) due 2024 broke for trading, and levels were seen at par bid, par 3/8 offered, a market source said.

The loan is priced at Libor plus 350 bps with a 1% Libor floor and was sold at an original issue discount of 99.5. There is 101 soft call protection for six months.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance an existing term loan due 2020 that is priced at Libor plus 300 bps with a 1% Libor floor.

SRAM is a Chicago-based bicycle components company.

BWIC announced

In more secondary news, a $66 million Bid Wanted In Competition surfaced, with bids due at 8 a.m. ET on Friday, a trader remarked.

Some of the debt in the portfolio is Allflex Holdings III Inc.’s first-and second-lien term loans, Faenza GmbH’s euro term loan B-1 and euro term loan B-2, and Multi Packaging Solutions Ltd.’s euro term loan C.

There are 12 issuers in the BWIC, the trader added.

Aramark reworked

Moving to the primary market, Aramark finalized pricing on its $1.75 billion term loan B (Ba1/BBB-) due 2024 at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps, added a step-down to Libor plus 175 bps when total leverage is less than 3 times, and moved the issue price to par from 99.75, a market source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Recommitments were due at noon ET on Thursday, the source added.

J.P. Morgan Securities LLC is the left lead on the deal that will be used with $600 million in senior unsecured notes to redeem the company’s $228.8 million notes due 2020, to refinance existing term loans and to pay fees and expenses.

Aramark is a Philadelphia-based professional services company that provides food, hospitality and facility management services as well as uniform and work apparel.

HCA sets spread

HCA firmed pricing on its $1,489,000,000 senior secured term loan B-9 (BBB-) at Libor plus 200 bps, the low end of the Libor plus 200 bps to 225 bps talk, according to a market source.

The term loan B-9 still has no Libor floor, a par issue price and 101 soft call protection for six months.

Bank of America Merrill Lynch is leading the deal that will be used to refinance a term loan B-6 priced at Libor plus 325 bps with no Libor floor.

HCA is a Nashville, Tenn.-based health care services provider.

Allnex updated

Allnex set the spread on its €425 million equivalent U.S. dollar and euro add-on term loan, repricing of its roughly $698 million term loan and repricing of its roughly €730 million term loan at Libor/Euribor plus 325 basis points, the low end of the most recent talk of Libor/Euribor plus 325 bps to 350 bps, according to a market source.

The U.S. term debt has a 0.75% Libor floor and the euro term debt has a 0% floor, and all of the debt, due September 2023, has 101 soft call protection for six months.

Original issue discount talk on the add-on loan is 99.75, and the repricings are being issued at par.

Earlier in syndication, the company added the add-on loan and revised talk on the U.S loan repricing from Libor plus 300 bps to 325 bps.

Consents and commitments were due at 5 p.m. ET on Thursday, the source said.

Morgan Stanley Senior Funding Inc. is the physical bookrunner on the deal (B1), and ING is a bookrunner.

The add-on term loan will be used to fund a dividend, and the repricings will take the U.S. and euro term loans down from Libor/Euribor plus 425 bps with a 0.75% floor.

Allnex is a Brussels-based supplier of resins and additives for architectural, industrial, protective, automotive and special-purpose coatings and inks.

Valeant revises call

Valeant Pharmaceuticals extended the 101 soft call protection on its fungible $3.06 billion incremental series F-3 term loan B due April 1, 2022 to two years from six months, a market source remarked.

Pricing on the loan remained at Libor plus 475 bps with a 0.75% Libor floor and an original issue discount of 99.75 on new money. The spread and the floor on the incremental loan matches pricing on the existing series F term loan B.

Barclays and Goldman Sachs Bank USA are leading the deal that will be used to extend a portion of the series D-2 term loan B, series C-2 term loan B and series E-1 term loan B in order to create one series F tranche.

With the refinancing, the company is looking to amend its credit agreement to provide for additional covenant cushion and improve financial flexibility. A company news release said that the amendment would remove the maintenance covenants from the term B loan, revise maintenance covenants under the revolver and modify certain other provisions.

Valeant accelerates deadline

Along with the call protection update, Valeant moved up its commitments and consents deadline for its incremental loan and amendment to 4 p.m. ET on Thursday from 2 p.m. ET on Friday, the source added.

Extending D-2, C-2 and E-1 lenders are being offered a 25 bps consent fee to be paid as an original issue discount on the incremental F-3 loan, series F term loan B lenders are being offered a 25 bps consent fee and non-extending series D-2, C-2 and E-1 lenders are not being offered any consent fee.

In addition to the term debt extension, the refinancing is expected to have the effect of extending the maturity date of the existing revolver, repaying all of the outstanding term loan A borrowings and repaying a portion of the outstanding 6¾% senior notes due 2018.

Other funds for the transaction will come from $3.25 billion in senior secured notes, upsized from $2.5 billion, with the additional proceeds being used to further reduce the 2018 notes and $250 million will pay down revolver borrowings.

Valeant is a Laval, Quebec-based specialty pharmaceutical company.

TeleGuam reveals talk

Also in the primary market, GTA TeleGuam held a bank meeting on Thursday morning to launch a $170 million credit facility and release price talk on the transaction, according to a market source.

The $15 million five-year revolver is talked at Libor plus 450 bps to 475 bps with no floor, the $130 million six-year first-lien term loan is talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the $25 million seven-year second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two, the source said.

Commitments are due on March 23.

BNP Paribas Securities Corp. is leading the deal that will be used to help fund the buyout of the company by Huntsman Family Investments from Advantage Partners.

Closing is subject to federal and Guam regulatory approvals.

TeleGuam is a Tamuning, Guam-based provider of telecommunications services.

Advanced Integration launches

Advanced Integration Technology launched with an afternoon lender call a $107 million six-year incremental first-lien term loan talked at Libor plus 550 bps with a step-down to Libor plus 475 bps on July 23, a 1% Libor floor, a par issue price and 101 soft call protection for six months, a market source said.

Commitments are due on March 21, the source added.

UBS Investment Bank is leading the deal that will be used to fund an acquisition.

Advanced Integration is a Plano, Texas-based industrial automation and tooling company delivering turnkey factory integration to the aerospace industry.

Lightstone readies deal

Lightstone Holdco will hold a lender call at 10:30 a.m. ET on Friday to launch $1,725,000,000 in term loans, split between a $1,575,000,000 covenant-light term loan B due January 2024 and $150 million term loan C (funded letter-of-credit facility) due January 2024, according to a market source.

The term loans are talked at Libor plus 450 bps to 475 bps with a 1% Libor floor, a par issue price and 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on March 16.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are leading the deal that will be used to reprice an existing term loan B and term loan C from Libor plus 550 bps with a 1% Libor floor.

Lightstone is a portfolio of four power generation facilities.

Univision prices

In other news, Univision Communications Inc. priced its $4,475,000,000 covenant-light term loan C-5 (B2/BB-/BB-) due March 2024 on Thursday, according to a market source.

The loan wrapped in line with talk at Libor plus 275 bps with a 1% Libor floor and an original issue discount of 99.75. The debt includes 101 soft call protection for six months.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC and Natixis are leading the deal that will be used to extend existing term loans due March 2020 and reprice them from Libor plus 300 bps with a 1% Libor floor.

Closing is expected on Wednesday, the source added.

Univision is a New York-based media company serving the Hispanic market.

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